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Siphoned Apart: A Portfolio Perspective on Order Flow Segmentation

Bart Yueshen Zhou, Markus Baldauf Joshua Mollner   May 16,2024

Working Paper No.00094-01

We study liquidity supply in fragmented markets. Market makers intermediate heterogeneous order flows, trading off spread revenue against inventory costs.... Read More

Published: Journal of Financial Economics, 2024, 154(), 103807-

Is 24/7 Trading Better?

Alexander Ober, Patrick Blonien   Sep 02,2024

Working Paper No.00142-00

Are daily market closures still needed? In a model of large traders who manage inventory risk, we show that even... Read More

Centralizing Over-The-Counter Markets?

Jason Allen, Milena Wittwer   Jul 18,2023

Working Paper No.00109-00

In traditional over-the-counter markets, investors trade bilaterally through intermediaries. We assess whether and how to shift trades on a centralized... Read More

What type of transparency in OTC markets?

Maren Vairo, Piotr Dworczak   Aug 11,2023

Working Paper No.00125-00

Financial over-the-counter markets have been traditionally very opaque. Recent regulation promotes transparency in some of these markets by lowering search... Read More

The Limits of Multi-Dealer Platforms

Chaojun Wang   Nov 14,2022

Working Paper No.00084-00

On many important multi-dealer platforms, customers mostly request quotes from very few dealers. I build a model of multi-dealer platforms... Read More

Time Trumps Quantity in the Market for Lemons

Piero Gottardi,Humberto Moreira, William Fuchs   Nov 15,2022

Working Paper No.00085-00

We consider a dynamic adverse selection model where privately informed sellers of divisible assets can choose how much of their... Read More

Markets for Financial Innovation

Kinda Hachem , Ana Babus   Dec 02,2022

Working Paper No.00090-00

We develop a theory of financial innovation in which both market structure and the payoffs of the claims being traded... Read More

Strategic Fragmented Markets

Ana Babus , Cecilia Parlatore   Apr 30,2021

Working Paper No.00071-00

We study the determinants of asset market fragmentation in a model with strategic investors that disagree about the value of... Read More

Published: Journal of Financial Economics, 2022, 145(), 876-908

Monitor Reputation and Transparency

Ivan Marinovic , Martin Szydlowski   Sep 22,2020

Working Paper No.00045-01

We study the disclosure policy of a regulator overseeing a monitor with reputation concerns, such as a bank or... Read More

Aggregation and Design of Information in Markets with Adverse Selection

Brett Green , William Fuchs , Vladimir Asriyan   Nov 05,2019

Working Paper No.00032-01

How effectively does a decentralized marketplace aggregate information that is dispersed throughout the economy? We study this question in a... Read More

Published: Journal of Economic Theory, 2021, (), -